HM Treasury

Update on HM Revenue and Customs' contract with Concentrix

Lord Young of Cookham: My hounourable friend the Financial Secretary to the Treasury (Jane Ellison) has today made the following Written Ministerial Statement.HM Revenue and Customs (HMRC) has concluded discussions with Concentrix regarding the negotiated early exit of its contract to investigate fraud and error in the tax credits system. As previously announced to the House, HMRC acted quickly to address the unacceptable level of customer service that tax credits claimants faced when contacting Concentrix and as a result, HMRC took back a significant number of cases. All 181,000 cases HMRC took back from Concentrix have been finalised. As of 13 November HMRC has completed around 28,500 of the approximately 32,500 requests for review of Concentrix decisions (known as Mandatory Reconsiderations) and will continue to handle any new cases as they arise. On 14 September, the House was informed that HMRC would not be extending its contract with Concentrix beyond its scheduled expiry date in May 2017. On 26 October, the House was further updated that HMRC had entered into discussions with Concentrix on a negotiated early exit from the contract. Those discussions have now concluded and the Chief Executive and Permanent Secretary of HMRC has decided to bring the contract to an early close. As a result of the contract ending, around 250 Concentrix staff have transferred to HMRC following completion of appropriate checks and HMRC has put in place a programme of induction and training. All these new staff are to receive formal training and support from team members, their managers and from subject experts. Managers will also receive bespoke management training to assist them in supporting teams. The latest estimated saving to the Exchequer from reducing fraud and error as a result of this contract is £193 million. The amount paid to Concentrix over the life of the contract is approximately £32.5 million. The £32.5 million overall cost of the contract includes the following: HMRC has paid approximately £15.3 million in 2016-17 with respect to work completed or work in progress at the end of the contract. As part of this, HMRC has applied the provisions of the contract that allow for reductions in payment when Concentrix has not achieved the required levels of performance against the indicators. For 2016-17, HMRC reduced payments to Concentrix by £1.9 million, and over the lifetime of the contract payments to Concentrix were reduced by a total of £3.5 million. HMRC has paid approximately £500,000 towards some of Concentrix’s exit costs from its subcontracts. Tackling error and fraud in the tax credits system remains a priority for the Government, and HMRC will continue to bear down on this. However HMRC recognises that the service provided to tax credit claimants deteriorated in recent months, which is why HMRC has negotiated an early exit from this contract. The National Audit Office has announced a wider examination of the contract, and HMRC will be working with them on their report.


This statement has also been made in the House of Commons: 
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Department for Exiting the European Union

General Affairs Council November 2016

Lord Bridges of Headley: My right honourable friend the Minister of State, the Department for Exiting the European Union (David Jones) has made the following Written Ministerial Statement.The General Affairs Council (GAC) on Tuesday 15 November is expected to focus on: preparation for the December European Council; October European Council follow-up: the Mid-Term Review of the EU’s Multiannual Financial Framework (MFF); the Commission Work Programme 2017 and a joint institutional declaration on legislative programming for the coming year; rule of law; and the Roadmap for the European Semester 2017. Preparation for the December European CouncilThe annotated agenda for the December European Council has been issued and will cover: migration, security, economic and social development - youth, and external relations. In line with the PM’s commitment, the UK will play a full and constructive role at the December European Council and in discussions at the GAC to prepare it. October European Council follow-upThe Presidency will present an update on the implementation of the October 2016 European Council Conclusions on migration, trade, Russia and other global and economic issues. Mid-Term Review of the EU’s Multiannual Financial Framework (MFF)Following initial discussions in September and October, there will be a further discussion on the Commission’s proposals regarding the Mid-Term Review of the Multiannual Financial Framework. Commission Work Programme 2017Commission First Vice-President Frans Timmermans will present the Commission Work Programme (CWP) 2017. The CWP is adopted annually by the European Commission. It contains a list of the legislative and non-legislative priorities that the Commission intends to bring forward in the course of the following calendar year. Inter-Institutional Agreement on ‘Better Law-Making’The Council, Commission and Parliament are to agree a ‘joint declaration’ on the priorities for the EU for the year ahead, based on the Commission Work Programme 2017 which was published on 25 October. The Presidency will update on progress at the GAC. Rule of LawThe Slovak Presidency will present a paper, based on written returns from Member States, assessing the effectiveness of the annual rule of law discussions among member states. European Semester 2017The Presidency will present the timetable for the 2017 round of economic coordination with Member States, otherwise known as the European Semester.


This statement has also been made in the House of Commons: 
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